How much is the coverage limit for third-party property damage in a private car TPO policy?

In a private car Third Party Only (TPO) insurance policy, the coverage limit for third-party property damage is typically aligned with statutory requirements and industry standards. The correct amount is often set at £20 million. This figure is designed to ensure that policyholders have adequate coverage in the event of significant property damage caused to third parties.

This limit is particularly relevant because it provides financial security not just to the insured driver but also to other road users and property owners who could suffer harm as a result of an accident. Such a substantial coverage cap reflects the potential for high repair costs associated with damage to vehicles, buildings, and other types of property. By having this limit in place, insurers help manage risk in a way that protects all parties involved in potential incidents.

In contrast, the other options represent amounts that do not align with the standard protection levels expected in the industry. Therefore, they will not meet the comprehensive coverage needs that a TPO policy is mandated to cover.